IMF revives the idea of Eurozone budget
On Thursday, the International Monetary Fund called on for the creating of a special fund to back up finance structural reforms in the Eurozone, thus sharing the idea with the European Commission in 2012, which was cancelled in the fact of Germany’s opposition.
Christine Lagarde, IMF Managing Director told that the major pool of money for the benefit of the Eurozone could only be available to the courtiers respecting the EU’s budget rules of the Stability and Growth Pact.
The very essence of Lagarde’s idea is that in exchange for complying with the Stability and Growth Pact, for complying with commitments on the structural reform, the countries would be attracting budgetary resources to a common pot, that could be employed to finance projects as well as certain operations.
It’s apparent that structural reforms appear to be the key to driving the Eurozone's growth rates. Furthermore, it will make its economies immune to shocks.